Korea Company Registration
Service Description
| I. Advantages of Korea company registration |
| Korea is an emerging capitalist country, a founding member of APEC, the World Trade Organization and the East Asia Summit, and a member of important international organizations such as the OECD, the G20 and the U.N. After the Asian financial crisis in 1997, Korea’s economy entered a period of moderate growth. The industry is mainly manufacturing and service industries, and the output of shipbuilding, automobile, electronics, steel and textile industries are among the top 10 in the world. Large conglomerates play a very important role in the Korean economy, with Samsung, Hyundai Motor, SK, LG, etc. being the major conglomerates. Let’s see what are the advantages of registering a Korean company:
1、Politics According to the data, Korea ranks 39th out of 180 countries in the 2019 Corruption Perceptions Index. Korea is a member of many global organizations such as the United Nations, World Trade Organization, OECD, and G-20, as well as a founding member of APEC and the East Asia Summit. 2、Economy Currently, there are eight FTAs that allow enterprises to be exempt from corporate tax for five years. Export-driven, mainly producing electronics, telecommunications, automobiles, machinery, ships, petrochemicals, and robots. The Foreign Investment Promotion Law passed by the government in 1998 not only provides security for foreign investors, but also provides tax and cash incentives. 3、Social ● A highly skilled workforce with a high level of literacy, and 80% of adults have a university education. In addition, according to the OECD, the country is considered to have the best IQ. However, less than 20% of the workforce speaks English fluently. This may cause some inconvenience when dealing with local authorities and banks. 4、Technology ● In March 2020, the Korean government passed one of the world’s first comprehensive cryptocurrency laws, a new framework that allows for the regulation and legalization of cryptocurrency exchanges and cryptocurrency wallets in Korea. Known for its high-tech innovation and rapid commercialization, Korea is home to many high-tech and commercial IT companies. Some of these companies include Samsung Electronics, LG Electronics, and Hyundai Motor. 5、Legal Since Korean is the official language of Korea, most legal corporate documents are in Korean. Therefore, if you are opening a corporate bank account outside of Korea, you will likely need to have the documents translated by a certified translator. ● According to the World Bank, Korea ranks the lowest in the world in terms of legal requirements to conduct business. 6、Environment Korea is one of the world’s largest producers of carbon dioxide. Korea is ranked 60th in the world according to the Environmental Performance Index. ● The Korean government launched the Green Start campaign in an attempt to reduce food waste and increase eco-friendly consumption in the country. The campaign includes incentives such as the introduction of a carbon point system and the enactment of necessary laws for green living. |
| II. Types of Korean Companies |
| 1、Limited Liability Company (Yuhan Hoesa)
A limited liability company (Yuhan Hoesa) is the most common business entity for foreign investors planning to do business in Korea. It is a closed-end company that allows up to 50 shareholders to have no liability for any debts or obligations incurred by the company, and liability is limited to the share capital. ● However, under the Korean Commercial Code, limited liability companies (Yuhan Hoesa) are prohibited from securitizing stocks and issuing corporate bonds. |
| 2、Joint Stock Company (Chusik Hoesa)
Chusik Hoesa is the most popular business entity for foreign investors to open subsidiaries in Korea. Currently, it is the only commercial entity in Korea that has a public stock offering. Thus, shareholders have limited liability in the Company based only on their initial capital investment. In addition, shares may be freely transferred with the approval of the Board of Directors. Therefore, a general meeting of shareholders must be held at least once a year. In addition, the joint stock company is required to appoint a statutory auditor to oversee the management and accounts of the company. 3、Partnerships A partnership is a business structure in which two or more business partners work together and share profits and losses between them. There are three types of partnerships: general partnership (Hapmyeong Hoesa), limited partnership (Hapja Hoesa) and limited liability partnership (Hapja Johap). Under a general partnership (Hop Sing Society), the partners have unlimited liability for the business and the transfer of ownership requires the unanimous consent of all partners. In addition, a partnership is not considered a separate legal entity and is subject to corporate tax. ● And in the case of limited partnerships (Hapja Hoesa) and limited liability partnerships (Hapja Johap), both require that at least one of the partners has unlimited liability for the business and the other partner has limited liability. Therefore, the limited members do not have the right to interfere with the decisions of the company. The only difference between these two types of partnerships is that while a limited partnership (Hapja Hoesa) is not considered a separate legal entity and is liable for corporate tax, a limited liability partnership (Hapja Johap) is considered a separate legal entity and is therefore not liable for corporate tax. If you want to start a business with other businessmen in Korea or get more capital through partnership loan, MannKind will recommend you to choose a partnership entity. 4、Branches ● The subsidiary is an extension of the parent company that plans to establish operations in Korea, and therefore the parent company assumes full responsibility for all liabilities incurred by the Korean subsidiary. In addition, the establishment of branches does not impose any restrictions on the number of investments or ownership. Your Korean subsidiary will not have full rights to government support or tax incentives compared to the business entities listed above. 5、Representative Office The Representative Office is generally available to foreign investors who do not intend to do business in Korea, and therefore they are only permitted to conduct limited non-commercial activities for their parent company, such as market research and marketing activities. However, the representative office still needs to be registered and reported to the governing tax office. Nonetheless, a representative office is a popular option for foreign investors planning to do business in Korea and for those seeking to explore potential markets before doing business in Korea. |
| Three, Korea company registration process |
| Step 1: Planning and Strategy
We will learn more about the company you wish to establish: the expected business activities, the capital, and the nationality of the directors and shareholders. Based on this information, we will recommend the most appropriate type of business entity and whether any licenses are required to legally conduct business in Korea. Step 2: Pre-registration Requirements Then, Vanguard will ensure that all due diligence files from directors and shareholders have been received. Step 3: Keep the preferred company name MES will then check the availability of the preferred company name and keep it. Step 4: Prepare and submit the relevant documents Our team of experts will start preparing all relevant documents, including the certificate of incorporation, articles of incorporation, etc. Then, we will submit all relevant documents on your behalf for incorporation. Step 5: Complete the registration After opening your Korean company with Mann-Enterprise, you can expect to receive your new company’s documents, including the Korean Business Registration Certificate, Memorandum and Articles of Association, and the Register of Directors and Shareholders. These documents will include ● the Korean company registration number that you will need to start your business in that country and open a corporate bank account. These files will be in Korean, and if you wish, we will provide you with a translated version in your preferred language. Step 6: Tax Registration We will assist you in registering your business and obtaining a tax ID. Step 7: Corporate Banking Account Opening We will open a corporate bank account for your newly established company. We will use our existing banking network to help you open a bank account with a reputable local or international bank. Step 8: Comply with the law After the company is formed, we will continue to support you in complying with government laws. We will help you in any way you need – preparing financial statements, filing annual returns, etc.
How long does it take to register a company? We will complete the registration of your foreign company in Korea through a simple process. Upon receipt of the required due diligence files from directors and shareholders, our team of experts will continue to reserve your preferred company name and prepare the company incorporation file. You do not need to travel during the whole process of incorporating a Korean company. The process of registering a company in Korea should be completed within approximately 14 days of hiring MannKind, and then we will continue to send you all the necessary documents. Within 4 weeks, Wan Enterprise Gang will open a corporate bank account with a local or international bank of repute. Therefore, you can start operating and invoicing within 6 weeks after hiring Wan Enterprise Gang. |
